For those who run a small retail shop, chances are that you’ll wonder why eCommerce statistics could be vital to you.
As a matter of fact, eCommerce is evolving fast, and it helps to widen your view and look at the bigger picture.
So this right here is what may very well be in it for you: concepts about your subsequent advertising and marketing campaign, what to anticipate when it comes to gross sales targets for your financial year, or new methods that may assist you to increase conversions.
We’re going to look at a lot, so let’s begin! Naturally, the statistics are grouped into categories:
The International eCommerce Market
Online global sales had been on a gradual improvement for the past few years. This trend has been quickened by the current COVID-19 pandemic. Folks were forced to stay at home and could not access retail outlets. Online shops delivered. The worldwide eCommerce market continues to be on an uptrend.
eCommerce: The Most Viable Way to Shop
Based on some researchers, 95% of all purchases will be done online by the year 2040. As cellular devices and the IoT (Internet of Things) make it simpler than ever to purchase objects on-demand, customers certainly appear to take pleasure in contactless digital shopping.
This will contribute to the rising sum of eCommerce sales globally, set to sum up to $4.9T in 2021.
China Tops Every Other Market
The top 10 biggest eCommerce markets globally, as compiled by Business.com, are:
- China: $672 billion
- USA: $340 billion
- United Kingdom: $99 billion
- Japan: $79 billion
- Germany: $73 billion
- France: $43 billion
- South Korea: $37 billion
- Canada: $30 billion
- Russia: $20 billion
- Brazil: $19 billion
Apparently, whereas a lot of the Western world is dominated by one retailing giant, the large Chinese market is more or less distributed between Alibaba (59% of the market), JD (17% of the market), and different other retailers. It is worth noting that Alibaba went public on the US stock exchange back in 2014 (and its stock has tripled since).
However probably the most attention-grabbing thing is that where the store is situated may not be so relevant anymore. And here is why…
More and More Consumers are Buying Internationally
The eCommerce market has increasingly open borders. As delivery and shipping logistics become more efficient, a rising number of customers are looking to buy deeper into the pond.
Based on a report by Nielsen (you can download it here), 57% of worldwide online shoppers (averagely) bought something from a retailer abroad in 2019.
Amazon: The Elephant In The Room
It is not possible to discuss global eCommerce without touching on the megastore that is Amazon. As a small retail store operator, you could have your gripes with it. However, the fact is that Amazon sets the rules for the eCommerce scene and that you should take an in-depth look at what happens with Jeff Bezos’s giant store, despite the fact that it has its share of gimmicks.
The Number 1 eCommerce Retailer In The World By Far
Alibaba, the number two Chinese retailer, generated $39.9B in sales in 2018. Amazon, meanwhile, reached $232B!
Prime Delivery Is Remodeling Buyer Expectations
One of Amazon’s key promoting points is Prime membership. It gives priority shopping together with a number of other different benefits.
There are currently 95M Amazon Prime members in the US alone, and this effectiveness in terms of sending/receiving your deliveries is what your retailer will definitely be up against. Delivery time is increasingly turning into the battle zone where sales are gained or lost. So how can smaller online shops compete with free next-day delivery?
Their Return Policy Is Additionally a GameChanger
Another benefit of controlling the delivery logistics and making that a lot of cash: you could be extra versatile with your product return policy.
Based on RetailDive’s research, 88% of shoppers interviewed indicated they want to be able to return purchased goods. 95% of them claim an easy return process will turn them into repeat customers. Amazon’s lax 30-day return policy is definitely influencing how your clients look at online shopping – ensure you’re very clear in your own return policies to keep from disappointing your shoppers.
Holiday Sales – Discounts and Offers
At the time of writing this, it’s somewhat too early to say if 2020’s Black Friday and Cyber Monday events (BFCM) will be as profitable as predicted. However, for eCommerce, holiday sales have grown to be a certainty (and in addition a hectic time of the year). Listed below are some fascinating stats:
BFCM Is Rising Each Year
Black Friday and Cyber Monday are two of the most important occasions in online shopping. Sales during BFCM periods have been growing by an estimated 19% year on year, and retailers are getting ready for an enormous uptick in orders in this year’s holiday season.
Keep an Eye on Prime Day
Here goes Amazon again, however, as a small or medium online retailer, you would be crazy to spend cash on advertising and marketing in mid-October. Amazon is forcing its Prime day offers and sucking all of the air out of online shops in early fall.
And it really works: in 2020, Amazon reported $3.5B in sales, a nearly 60% year-over-year increase for Prime day profits.
Online Shops Platforms
We have, in the past, gathered some fascinating statistics about Shopify and WooCommerce. The numbers haven’t changed all that much in late 2020. However, listed here are nevertheless some interesting stats that assist in understanding where they fit in the bigger perspective of online shops platforms.
WooCommerce Rules eCommerce Websites
It takes a staggering 76% of the plugin market (in all categories), which is spectacular, even when you consider that WordPress runs just about a 3rd of all websites globally. Considering that Automattic, the owner of WordPress.com, owns WooCommerce, this might not be such a shock after all.
Should you be curious about the first runners-up, Ecwid, it’s a plugin that permits you to add an online shop module to any website. It’s fascinating to see how popular it has become, considering it’s not precisely a household name, not like, say, Shopify. Talking of which…
Is Shopify Taking The World By Storm?
Based on our analysis, Shopify was the one online store platform provider that is trending in every continent, with particular strongholds in Africa, North America, Australasia, and Southeast Asia.
Whereas the online retailer platform was historically focused on the US and Canada (which later extended to various other English-speaking nations), in 2018 the company started aggressively focusing on the rest of the globe.
There are additional six new languages available on Shopify: German, Brazilian Portuguese, French, Italian, Spanish, and Japanese. Shopify Payments, (a key marketing point if you wish to keep from paying extra on card transaction charges), is now live in additional international locations, and a whole lot of currencies are already available.
Oh, additionally, their stock rose up 270% in the middle of a pandemic.
Magento: eCommerce Solutions For Large Players
This will most likely not come as a shock to anybody, however, Magento continues to be the primary eCommerce solution for large name brands in a wide range of verticals, such as Olympus, 3M, Nike, or Ford.
It is very unlikely any of those corporations would all of the sudden change to Shopify after building an entire infrastructure for and around Magento. However, there has been a noticeable reduction in usage between 2019 – 2020.
Don’t Miss Out on Mobile Sales
Up to now, we’ve already seen and established that customers are buying online more than ever. However, what about their favored gadgets?
It seems like smartphones are being used more and more for online shopping. Neglecting these gadgets may have horrible consequences for your shop.
Half of the Purchases Come From Mobile
Based on OuterBox, traffic from cellular devices became as common as desktop traffic back in 2015. A whopping 40% of holiday sales in 2018, for example, were made straight from mobile devices.
Build A Better Mobile UX For Your Store
One other insane stat, 62% of customers who’ve had a nasty experience with mobile shopping will look elsewhere. And that’s based on a Google research paper, that you can read here.
App or Mobile Website? Both!
Because we are talking about mobile shopping, let us also point out the difference between in-app purchases and mobile websites or progressive web apps (PWAs).
Data available from Google suggests that it doesn’t matter much whether or not you sell through a dedicated app or an optimized mobile website. The lines are becoming more and more blurry between the 2. The important thing is to make sure that your website is tenfold quicker, that the consumer experience is top-tier, and that the content is useful.
Marketing Channels – How To Assist Consumers
There is a reason brick and mortar outlets keep doing well: customer support and salespeople. They’re physically there to assist consumers, inform and guide them (and sometimes upsell or cross-sell merchandise). How do you do it within the digital era?
Instagram is A Critical Discovery Tool
Take the statistic lightly because it comes from Facebook, however, 83% of users say Instagram assisted them to discover new products and services.
It definitely aligns with what different marketing firms have discovered, as GlobalWebIndex says 70% of Instagram users are more likely to buy online on their mobile devices. Equally, 44% of Instagram users claim to have used social media to conduct brand research. No surprise there as the engagement between customers and brands is ten times greater on Instagram than on Facebook.
The (Hidden?) Power of Messaging Apps
Live chat for online shops is becoming standard. Based on Facebook themselves, 61% of US shoppers have messaged a business directly in the last quarter. You possibly can’t beat the pace, effectivity, and convenience of speaking straight to an enterprise from your own cellphone or desktop.
Automated Response With Live Chat and Chatbots
We can argue that chatbots are helpful more for support than really shopping. But the clever customer experience platform Narvar reports that 29% of US online shoppers use them to make purchases.
Setting up a live chatbot is not as hard as you might imagine. You may even find the process somewhat interesting.
Email Marketing: The King of Abandoned Cart Recovery
SaleCycle points out that the global cart abandonment rate in late 2018 was 76.9%. That’s plenty of orders that aren’t fulfilled! The three main reasons are an excessive delivery procedure, a complicated account creation process, or a complex checkout experience. These have been the top answers given to Baymard institute, exhibiting once more that a frictionless checkout experience is important.
However, how do you recover these (almost) lost shopping carts? Email marketing remains the most effective technique. Based on Moosend, (who, we acknowledge, could possibly be biased) the open rate for abandoned cart emails peaked upwards of 40%!
eCommerce’s Dirty Secret: Online Fraud
Let’s finish with statistics on an unfortunate subject: the rising problem of global online fraud. Looking at how it is a growing concern, there is a likelihood that you’ve been required to deal with fraudulent customers one time or another. Here’s where it’s headed based on the available numbers.
Chargebacks Are Expensive
The most typical kind of eCommerce fraud is chargeback fraud, which occurs when a buyer tells their card firm they didn’t make a purchase order. It’s often a lie, which gives them free merchandise, a refund, and finally ends up costing you, as you must foot the chargeback charges. That is expected to cost online store owners $130B by 2023.
In reality, it’s estimated that businesses end up paying three dollars in costs to each dollar lost to fraud.
Watch Out For Return Fraud
Return fraud is a rising concern and one which many online retailers blame on Amazon’s lax return policies (see above for more information). The giant retailer makes it simpler than ever to return products, which some buyers take advantage of (wardrobing, for example, where they purchase clothes, wear it once, and return it later). 1 in 5 UK shoppers admits to having done this. This, in part, explains why return charges continue to grow (estimated to reach 10% by 2022 according to Deloitte).
Increased Cases of Account Takeover
An account takeover or ATO attack occurs when fraudsters use your clients’ accounts. They will either somehow learn the login details through phishing or from data leaks purchased on the darknet. Doesn’t matter how, it looks bad for online shops, breaking trust, and not to mention the lost effort and time in customer support.
Whereas this was a huge drawback in online gaming and digital wallets, we’re seeing increasing attacks on online shops, which cost retailers $9B in lost profits in 2019.
2020 eCommerce Stats – The Key Takeaways
What can we conclude from this data? Listed below are four actionable suggestions you might use on your own eCommerce journey:
- Make the consumer experience as seamless as possible. Customers will flock to your rivals on the first signal of an obstacle, from a complex checkout process to a strict return policy.
- However, don’t be too carefree: fraudsters are focusing on small online shops more and more, so don’t assume your size will let you stay below their radar.
- Multichannel communication is the best way to go: ideally, it’s worthwhile to master email marketing, implement chatbots and guarantee your online business is easy to communicate with, whichever manner clients prefer to.
- Stay optimistic: if there’s one silver lining to all of the obstacles confronted by online retail store owners, it is that eCommerce shows no signs of slowing down. If you find your area of interest, offer great products, and keep clients satisfied, you’ll have all the odds in your favor.
Here’s hoping for a fantastic eCommerce year in 2021!
FTC Disclosure: BBM receives referral fees from tools listed on this website. However, the opinions are based on our experience and not how much they pay. We focus on helping small businesses and individuals to build websites as a business.